MAHA Announces Share Buyback Worth IDR 200 Billion, Focuses on Increasing Investor Confidence

Jakarta, 16 September 2024 - The issuer operating in the mining transportation services sector, PT Mandiri Herindo Adiperkasa Tbk (MAHA), announced a corporate action plan in the form of a share buyback with a maximum value of IDR 200 billion. This plan includes purchasing shares of up to 20% of the company's total paid-up capital and will be carried out within a period of one year, starting from 23 October 2024 to 22 October 2025.

MAHA Corporate Secretary, Irvan Darwin, said that the buyback plan will be submitted for approval at the Extraordinary General Meeting of Shareholders (EGMS) which will be held on October 22 2024. "The share buyback is expected to increase investors' confidence in the company's fundamental value, " said Irvan in an information disclosure, Friday (13/9).

Furthermore, Irvan explained that the shares bought back would be used as treasury shares, which could be resold at the right time if the company needed additional capital in the future. According to him, this buyback also aims to increase share liquidity in the market.

As of August 2024, MAHA's total shares were recorded at 16.66 billion shares, with controlling share ownership of 34.5%, while non-controlling shares reached 65.5%. There are 10,455 registered shareholders, with conglomerate Eddy Sugianto as the main beneficiary of this share ownership.

In the last trading which took place on September 12 2024, MAHA shares closed at IDR 188 per share with a trading volume of 10.3 million shares and a total transaction value of IDR 1.98 billion. MAHA's market capitalization was recorded at IDR 3.13 trillion.

MAHA, which operates as a coal mining contractor in East Kalimantan, is optimistic that this buyback step can strengthen the company's fundamentals while increasing value for shareholders in the long term. This step is also believed to be a form of the company's commitment to better growth prospects in the future.

Meanwhile, Eddy Sugianto, the majority shareholder in MAHA through his company Edika Agung Mandiri, is listed as one of the richest people in Indonesia. In the list of the 50 richest Indonesian people in 2022 according to Forbes, he is ranked 32nd with a net worth of US$1.2 billion as of April 2023.